This preview shows page 1. Sign up to view the full content.
Unformatted text preview: are carried, Q/2 is the average number of units carried in inventory during the year. The economic (optimal) order quantity (EOQ) is that order quantity which minimizes total inventory costs. Thus, we have a standard optimization problem, and the solution is to take the first derivative of equation 1 with respect to quantity and set it equal to zero: Q ) S )( F ( 2 ) P )( C ( dQ ) TIC ( d 2 = = . Mini Case: 28 - 6...
View Full Document
- Spring '08